IRS Instruction 8233 - IRS Forms, Instructions, Pubs 2026

IRS Instruction 8233 – IRS Forms, Instructions, Pubs 2026 – Nonresident aliens performing personal services in the United States often face mandatory federal tax withholding. However, many can reduce or eliminate this withholding through U.S. income tax treaties using IRS Form 8233.

This comprehensive guide, based on the official Instructions for Form 8233 (Rev. December 2025) and the form itself (Rev. September 2018), explains everything you need to know: who qualifies, how to complete the form, submission requirements, and common pitfalls.

What Is Form 8233 and Who Should File It?

Form 8233, titled Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, allows eligible nonresident aliens to claim a tax treaty-based exemption from federal income tax withholding on:

Compensation for independent personal services (e.g., as an independent contractor, consultant, visiting lecturer, or honorarium recipient)
Compensation for certain dependent personal services (e.g., wages as an employee) when a treaty provides an exemption
Noncompensatory scholarship or fellowship income only when claimed alongside personal services income from the same withholding agent

You must file a separate Form 8233 for each tax year, each withholding agent (e.g., employer or payer), and each type of income.

Do NOT use Form 8233 if:

You are claiming only foreign status or treaty benefits on non-compensation income → Use Form W-8BEN
You are a nonresident alien employee not claiming a treaty exemption on wages → Use Form W-4 (with special NRA instructions)

Key Definitions You Need to Know

Nonresident alien: An alien who does not meet the green card test or substantial presence test (or who qualifies as a resident of a treaty country for treaty purposes).
Independent personal services: Services performed as a self-employed individual (e.g., fees paid directly to physicians, attorneys, consultants, or speakers).
Dependent personal services: Services performed as an employee (wages, salaries, compensatory scholarships).
Withholding agent: The person or entity (university, company, etc.) making the payment.
Beneficial owner: The individual who must include the income on their U.S. tax return.

Important note: You generally cannot claim a treaty exemption for independent personal services if you have a fixed base or office in the United States (with limited treaty exceptions).

Eligibility: When Can You Claim a Treaty Exemption?

You qualify if:

You are a nonresident alien.
You are the beneficial owner of the income.
You meet all residency and other requirements of the specific tax treaty article.

Common treaty articles include:

Independent personal services / Business profits (often Article 7 or 14)
Dependent personal services (often Article 15 or 16)
Student/trainee or teacher/researcher articles (prior residency in the treaty country is usually sufficient)

Athletes and entertainers are rarely eligible due to special treaty provisions.

Students, trainees, professors, and researchers often receive favorable treatment under specific treaty articles, but must attach a detailed statement (see Pub. 519 appendices).

Step-by-Step Instructions: How to Fill Out Form 8233?

Before you start:

Obtain your SSN or ITIN (apply with Form W-7 if needed).
Identify the exact tax treaty, article, and exempt amount.
Gather your I-94, visa, passport, and (for students/researchers) the required statement from Pub. 519.

Part I – Identification of Beneficial Owner

Line 1: Full name
Line 2: SSN or ITIN
Line 3: Foreign tax ID (if any)
Line 4: Permanent residence address (treaty country address)
Line 5: U.S. mailing address (if different)
Line 6: U.S. visa type (F-1, J-1, etc.; “None” if no visa)
Line 7a/b: Passport country and number (not required for Canadians/Mexicans)
Line 8: Date of entry into the U.S. (use earlier date if treaty combines periods)
Line 9a/b: Current nonimmigrant status and expiration (“DS” for duration of status)
Line 10: Check the box and attach the required statement if you are a student, trainee, professor/teacher, or researcher

Part II – Claim for Tax Treaty Withholding Exemption

Line 11a: Detailed description of services (e.g., “Teaching chemistry course at XYZ University”)
Line 11b: Total expected compensation for the year
Line 12a–c: Treaty country, specific article, and exempt amount (“All” or a dollar figure)
Line 12d: Country of residence (must match treaty requirements)
Line 13: Complete only if also claiming exemption on noncompensatory scholarship/fellowship income from the same payer
Line 14: Provide sufficient facts to justify the claim (dates, activities, treaty limits, etc.)

Part III – Certification

Sign and date under penalties of perjury.

Special Rules for Students, Teachers, Researchers, and Trainees

These individuals must attach a statement from Pub. 519 (U.S. Tax Guide for Aliens) Appendices A or B.
Spouses and dependents on secondary visas are generally not eligible for the same benefits.
Many treaties limit the total years of exemption (e.g., 5 years total for student + teacher under some treaties).
Use the earlier entry date if combining student and teacher periods.

How and When to Submit Form 8233?

Complete the form and attachments.
Give the original + copies to your withholding agent (employer, university, etc.).
The withholding agent reviews, signs, makes three copies (including attachments), keeps one, gives one to you, and forwards one to the IRS within 5 days of acceptance.
- Mail: Department of the Treasury, Internal Revenue Service, Philadelphia, PA 19255-0725
- Fax: 267-941-1365 (≤25 pages)
The exemption is effective retroactively to the first payment, provided the IRS does not object within 10 days.

You cannot send Form 8233 directly to the IRS—it must go through the withholding agent.

Common Mistakes to Avoid

Using the same form for multiple payers or years
Failing to attach the required student/researcher statement
Providing insufficient facts in Line 14
Claiming exemption when a fixed base exists in the U.S.
Missing the 5-day forwarding deadline (agent may be penalized)

Penalties: False statements can result in the agent being required to withhold, plus potential IRS penalties for both parties.

Frequently Asked Questions (FAQ)

Do I need a new Form 8233 every year?
Yes—specify the tax year at the top.
Can I claim the exemption on honoraria or consulting fees?
Yes, if the treaty article covers independent personal services and you meet all conditions.
What if I don’t have an ITIN yet?
Attach a copy of your pending Form W-7; the agent may still process but must withhold until the ITIN is issued in some cases.
Does California (or other states) honor the treaty exemption?
Most states do not automatically recognize federal tax treaties—check state rules separately.
Where can I find the latest form and instructions?
Download the current Form 8233 and Instructions for Form 8233 (Rev. December 2025) directly from IRS.gov.

Final Tips for Success

Review the specific treaty between the United States and your country of residence (full texts are on IRS.gov).
Consult Publication 519 and the treaty technical explanations.
Work closely with your university payroll office or employer’s international tax coordinator—they handle the IRS submission.
Keep copies of everything.

By correctly completing and submitting Form 8233, eligible nonresident aliens can avoid or significantly reduce unnecessary federal tax withholding and receive more of their compensation upfront.

For the most accurate and up-to-date information, always refer to the official IRS resources:

Instructions for Form 8233 (December 2025)
About Form 8233

If your situation involves complex treaty provisions or multiple income types, consider consulting a tax professional familiar with nonresident alien taxation.

This article is for informational purposes only and is not tax advice. Tax laws and treaty interpretations can change. Consult the IRS or a qualified tax advisor for your specific circumstances.